Prescribing the Procedure for the Refund of Taxes Withheld and Collected on the Interest Income of NSTA-Accredited Foundations and the Philippine National Red Cross, Pursuant to FIRB Resolution Nos. 16-85 and 17-85

October 3, 1985 REVENUE MEMORANDUM ORDER NO. 29-85 SUBJECT : Prescribing the Procedure for the Refund of Taxes Withheld and Collected on the Interest Income of NSTA-Accredited Foundations and the Philippine National Red Cross, Pursuant to FIRB Resolution Nos. 16-85 and 17-85 TO : All Internal Revenue Officials, Withholding Agents and Others Concerned SECTION 1. Rationale . In order to implement the provisions of FIRB Resolution Nos. 16-85 and 17-85 authorizing the refund of the above-captioned interest income to NSTA-accredited foundations and the Philippine National Red Cross, it is hereby directed that the following procedures/guidelines be followed by all concerned. SECTION 2. Definitions . For the purpose of this Order, unless the context otherwise indicates, the following definitions of terms are hereby adopted. (a) "Interest income" shall include all interest on bank deposits and yield or any other monetary benefit from deposit substitutes, trust funds and other similar arrangements. (b) "Withholding Agent" shall mean any person required to deduct and withhold any tax due under the provisions of Section 53 of the National Internal Revenue Code of 1977. (c) "NSTA-accredited foundations" shall mean those foundations or organizations duly registered with the National Science and Technology Authority, pursuant to Republic Act No. 2067, as amended by Republic Act No. 3589. casia (d) "PNRC" shall mean the Philippine National Red Cross, established under Republic Act No. 95. SECTION 3. Refund . Interest income of NSTA-accredited foundations and the Philippine National Red Cross shall be subject to the 15% final withholding tax. Said tax shall, however, be refunded to the taxpayer herein upon presentation of proof of such withholding and other relevant information as required in this Order. SECTION 4. Requirements to be satisfied prior to refund . The applicant must present a written claim for refund of the final tax on interest income withheld. Said claim must be filed with the Commissioner of Internal Revenue, Attention: Chief, Withholding Tax Division within two years counted from the end of the year in which said interest income was realized. The application for refund must be accompanied by a statement of Final Income Tax Withheld at Source (BIR Form No. 1743-2) issued by the withholding agent. In case of foundations, they must in addition thereto, submit proof of their accreditation with the NSTA. casia SECTION 5. Action . The refund or credit of the tax herein shall be granted only upon compliance with all the requirements provided herein. Reasonable proof may likewise be required from the applicant for the purpose of establishing its identity. No refund shall be authorized without prior verification and confirmation by the Chief, Accounting Division, that the taxes withheld and paid have been actually remitted to the government. The tax shall be refunded within ninety (90) days from receipt of the request for refund. SECTION 6. Repealing Clause . The provisions of Revenue Memorandum Orders and other pertinent issuances inconsistent herewith are hereby revoked or amended accordingly. SECTION 7. Effectivity . This Order shall take effect immediately. All Revenue Officers concerned are enjoined to give this Order as wide a publicity as possible. acd (SGD.) TOMAS C. TOLEDO Acting Commissioner